NEW MEASURES TO BOOST FINANCIAL TIES

The Hong Kong Special Administrative Region Government welcomed today's announcement by the People’s Bank of China (PBoC) on a series of measures which deepen financial co-operation between the Mainland and Hong Kong.

Chief Executive John Lee expressed his deep gratitude for the staunch support of the Central People’s Government towards Hong Kong's financial development.

He said that the six new measures deepen the mutual access between the financial markets of the Mainland and Hong Kong, and better serve international investors’ need for liquidity management of investments in the Mainland bond market.

The new measures are conducive to giving full play to Hong Kong’s role as an international financial centre, and actively contributing to building strength in finance and the high-quality development of the country’s finance.

Mr Lee added that the measures also meet the demands for cross-boundary financial services of the residents and businesses of the Mainland and Hong Kong, by providing innovative payment services for cross-boundary retail consumption by residents of the two places, facilitating Hong Kong residents purchasing properties in the Mainland cities of the Greater Bay Area, and providing more convenient services to businesses of the two places seeking cross-boundary financing.

“The Hong Kong SAR Government will continue to actively consolidate and strengthen Hong Kong’s position as an international financial centre, capitalising on our strengths in financial services.”

Monetary Authority Chief Executive Eddie Yue met the media this afternoon on the six new measures.

He noted that the first measure expands the list of eligible collateral for the Monetary Authority’s Renminbi Liquidity Facility to include RMB bonds issued onshore by the Ministry of Finance of China and the policy banks of China.

“Second, further opening up the onshore repurchase agreement market, the repo market, to support all foreign institutional investors, including Bond Connect investors, with access to the China Interbank Bond Market to trade repo.

“Third, issuing the amendments to the implementation arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Greater Bay Area.”

The other three measures involve introducing facilitative measures on remittances for property purchase by Hong Kong residents in the bay area, deepening the collaboration on cross-boundary credit referencing and expanding the cross-boundary pilots of e-CNY.

Mr Yue emphasised that the announcement today is a concerted effort of the PBoC, the Monetary Authority, and other relevant financial regulatory authorities on both sides.

The measures will strengthen Hong Kong’s status as an international financial centre and offshore RMB business hub, and further facilitate the connection of capital, data and financial markets in the bay area, he added.

---

PREVIOUSNEXT